Gold is 0.3% lower in US dollars and 0.5% lower in euros. Gold again
experienced weakness due to volatility and weakness in global stock
markets. However, this weakness is likely to be temporary again and
growing fears over the stability of Italy and the euro zone will support
safe haven gold.

Sharp falls in equities and commodities may have again forced some
investors to sell profitable gold positions to cover losses elsewhere
particularly in stocks which fell sharply in the US and Asia but have
stabilized in Europe.

Gold fell 0.8% in dollar terms yesterday but was higher in most currencies especially the euro.

The escalating crisis has prompted EC President Jose Manuel Barroso
to issue a stern warning of the dangers of splitting the zone. EU
sources told Reuters that French and German officials had held
discussions on just such a move.

Merkel has called for changes in EU treaties and French President
Nicolas Sarkozy advocated a two-speed Europe in which euro zone
countries accelerate and deepen integration while an expanding group
outside the currency bloc stays more loosely connected -- a signal that
some members may have to quit the euro.

The failure of the Eurozone and the European monetary union looks
increasingly likely. This has incredible political, economic and
monetary implications for the world and could lead to shockwaves akin to
or surpassing that seen after the collapse of the Soviet Union.

Given the scale of the crisis, we continue to amazed at the lack of animal spirits in the gold market – both from media coverage and from public participation.

The majority have no idea of the ramifications of these momentous
geopolitical developments. The public knows the developments are
negative but most are resigned to their fate and many are like deer in
the headlights failing to join the dots and realize the ramifications
for their investments, savings and financial wellbeing.

While demand in Asia has fallen from the very strong levels seen
recently - demand continues and Chinese New Year should see Chinese
demand pick up again in the coming weeks.

Western investment demand continues as seen in increasing allocations to the SPDR trust.

Holdings of the SPDR Gold Trust added 3.025 tonnes from a day earlier
to 1,267.153 tonnes by November 9, the highest since late August. The
ETF saw an inflow of nearly 24 tonnes so far this month, after an
11.6-tonne gain in October and a fall of more than 30 tonnes in the
previous two months, showing reviving interest in gold from investors.

As we have said for some time ETF buyers are primarily long term
diversifiers in nature and not speculative ‘hot’ money likely to flee
the gold market on signs of weakness. Much of the ETF buying is from
institutions including pension funds who are diversifying their
portfolios with very small allocations to the gold trust.

Bullion dealers in western markets continue to see demand but demand
is nowhere near the levels seen at the height of the Lehman crisis or
even towards the end of gold’s sharp rise to over $1,900/oz in August.

The public is nowhere near the gold market and the majority of people
in the western world could not tell you the price of gold today – let
alone how to buy it. The mainstream, non financial specialist, media
continues to cover gold sporadically at best.

Price falls tend to be headline news rather than price gains.

Much of the buying we are seeing is from existing precious metal
buyers choosing to sell existing precious metal type investments such as
ETFs and digital gold in order to own physical bullion.

Given the significant counter party risk seen in the world, as
graphically illustrated by MF Global, more buyers are choosing to take
delivery or opting for personal allocated accounts with legal title to
the bullion which is in their name

This position is understandable given massive counter party risk due
to the risk of corporate, banking and national bankruptcies.

For breaking news and commentary on financial markets and gold, follow us on Twitter.

SILVER
Silver is trading at $33.91/oz, €24.91/oz and £21.25/oz

PLATINUM GROUP METALS
Platinum is trading at $1,623.20/oz, palladium at $643.50/oz and rhodium at $1,525/oz.

I would vouch the comparison does not do it justice. The Eurozone is a much, much larger economy than the USSR ever was/will be. Could be real ugly. However, Ben has not played his hand yet. Don't think the Eurozone is going to go down without Ben being involved in a "rescue" attempt first. Time for US citizens/residents to prepare for a real shafting.....

I am beginning to think that this economic collapse isn't something that is going to happen anytime soon. Every exchange on the planet is front run and computationally directed to the fucking max. Italy can pull a $6.8 billion euro bond purchase out of its ass at the drop of a pin. Bank of America is the most disfunctional and corrupt bank on the planet but it is now propped up by so much fiat injection, by just a few players, that it is impossible for it to break the $6 line of support anymore. European banks can lose 20% equity in a matter of seconds and be fine.

20 years ago we would have called these events catastrophic but today we are told to call them 'market moves'.

Gold could be heading down due to margin calls--all commodities are way overpriced due to speculators running rampant with printed money, desperately trying to save their firms. It will never work--didn't work for Lehman or Bear, won't work now, either.

Gold and silver would decline in the failure as well, margin hikes and margin calls would require selling...every large selloff lately for equities have included gold which is how you can tell there is real fear in the markets...

so the ECB is going on a bond buying binge and claims printed sub 400,000... for now? looks like whoever called a 400 pt rally yesterday is going to be right after all. I know once there was a real world where basic math and the laws of economic psychics once applied...but now I'm beginning to wonder just how long can this bullshit go on for?

has it come to the point where simply making shit up, news, rumors, stats, money (via printing, digital or "glitches") has completely replaced any sense of common sense? another day, another dead cat bounce, another opportunity for the 0.0001% to suck more of life out of the the rest of us, to take what so many already don't have.

another day when a child will be born into a world where there only future is to sling hash, sell goods made somewhere else or become a dependent of the superstate, and their only right will be that of a debt slave.

"The failure of the Eurozone and the European monetary union looks increasingly likely"

How many fucking times you yanks are going to repeat this crap like stupid parrots? 10 fucking years I have heard that shit...well, let's hear that shit for maybe another five years while we are at it before USA goes the way of USSR. Then you might even shut the fuck up.

All that's happening is predictable, as there are 7 stages that every major economy goes through. Those who know how it works profit & massive wealth is transferred to them. Several months ago I learned this information from a millionaire whose site I found & am sharing it with everyone I know. His free video "How To Create Incredible Wealth in Today's Economic Crisis" is at:http://theelevationgroup.net/presentation/register.php?a_aid=160667&a_bid=290b868b&chan=y Hope this info helps everyone as much as it has me. Dr. Nancy

"The public knows the developments arenegative but most are resigned to their fate and many are like deer inthe headlights failing to join the dots and realize the ramificationsfor their investments, savings and financial wellbeing"

When one has not been working,can't find work and can't pay the bills, do you really think that one can buy gold hedges when the price of bread and milk are going up everyday?

"Financial Follies" - worldwide premier! A dazzling display of stupidity and hubris,a cast of thousands, plays every day and coming soon to a neighborhood near you! If you pay taxes, it's free, if you don't pay taxes, it's free, if you can fog a mirror, it's FREE...